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Should Netflix Be Worried About Losing Customers?

Report: Brand perception drops drastically since recent announcements

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During the first half of the year, things were looking really good for Netflix subscribers. The company made announcements like: “Miramax Content Deal,” “More MTV Content,” “Glee Available to Watch Instantly,” “More Anime Coming to Netflix,” “Marvel Content Coming to Netflix,” and “Netflix Launch on Android.” The company was making deals to bring users more streaming content, and making it available on more devices. It even announced forthcoming exclusive content with House of Cards, which would presumably be just the beginning.

Is Netflix headed in the right direction? Share your thoughts in the comments.

Their streaming catalog has certainly improved a great deal over the past year or so. No question. It’s got a long way to go to match their DVD catalog, but the company has certainly given people more reasons to use its streaming service.

In June, the announcements were things like: “New Look and Feel for the Netflix Website,” and “Temporary Removal of Sony Movies through StarzPlay.” In July, while the company did announce expansion into Latin America, came the big announcement of price changes, where members signed up for the popular unlimited streaming and unlimited DVDs (one at a time) plan have to pay 60% more to keep the same service (which is actually turning into two separate plans).

Backing up to June, the Netflix redesign turned into a PR nightmare on its own. Though Steve Swasey, VP of Corporate Communications was quoted as saying, “We know the vast, vast majority of people like this,” regarding the design changes, it was clear by reading comments all over the web that if that was indeed the case, the vast, vast majority wasn’t speaking up nearly as much as those that loathed or even slightly disliked the design.

It didn’t take long for users to max out the comments section of Netflix’s original announcement, mostly with harsh criticism of the design changes. We ran several stories related to the design here at WebProNews and received hundreds more. The comments on the removal of Sony movies reached into the thousands as well, though many of them were simply more complaints about that redesign.

Just before Netflix announced the price hike, they did cave a little bit on some of the complaints about the design. They said they’d bring sortable lists back. Then they dropped the price bomb effectively smashing what little love that may have earned back from the users who were upset about that.

Of course when Netflix announced the price hike, the negative comments poured in again on Netflix’s blog, once again maxing out. Again, we got hundreds more on our own coverage. Any guesses as to how many comments their Facebook update about it got?

Just shy of 80,000.

Of course Netflix knew there would be plenty of backlash. According to CNET, they had extra customer service reps working when they announced it. “We knew what the reaction would be,” Swasey told the publication. “We are not surprised. We knew that there would be some people upset by the service and with the price being adjusted.”

Since then, Netflix has just been pushing on, likely hoping the fury would die down.

This past week, Netflix announced that its Android app could support more devices, as previously it had only supported a few. Now it supports 22. The reviews for the app are overwhelmingly positive. At the time of this writing, it has 32,072 five-star ratings and 6,921 four-star ratings. Only 4,882 gave it a one-star rating, and you have to wonder how many of those are just bitter about recent events. Some of them were simply rated low because of the app’s incompatibility with some devices.

NetflixAndroid abound! You can now instantly stream movies & TV shows from Netflix on-the-go using your HTC Evo 3D, Droid 3, Galaxy S, HTC Thunderbolt, or Motorola Atrix phone — plus many others that are now supported. Check it out in the Android Market http://bit.ly/nfxandroid, and more info on our blog: http://bit.ly/NfxAdrd

Of course if you look at the comments on Netflix’s announcement about this, you’ll quickly find more jabs at the company’s decision to raise prices. “Perhaps you should spend more time on keeping current services working instead of setting up new services,” said Mitch Snyder, commenting on the Netflix Facebook post.

In afternoon trading on the day before the price hike was announced, Netflix stock was priced at 290.15. At the time of this writing, though up from yesterday, is still down at 277.30.

Many users have said they’d quit the service. They were saying that before the price hikes even – just because of the redesign. Many more indicated they would do so after the price announcement. An outage last weekend probably didn’t help too much, though Netflix is crediting 3% of users’ bill for the inconvenience.

“Netflix’s July 12th price change announcement hammered the company’s consumer perception down below its competitors where it still remains today,” a representative for YouGov BrandIndex tells WebProNews. “Two weeks after the Netflix price structure notice on DVD rentals and streaming, the Los Gatos-based company saw its consumer perception with adults sink rapidly below competitors Redbox, DirecTV and even bottom-score dweller Blockbuster, which resides in widely-held negative opinion territory.”

“The brand which seems to have benefited the most appears to be kiosk-based rental chain Redbox, whose perception has moved from a virtual tie with DirecTV to pulling away to higher positive score numbers.”

YouGov BrandIndex Data

What should Netflix do to help its brand perception? Tell us what you think.

Should Netflix Be Worried About Losing Customers?
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  • Felix Scott

    Netflix needs to offer 30 day free trials to people who have debit cards too and not just to people who have credit cards.

    • Don’t Ask Me

      They do.

  • Ex-Netflix

    Netflix achieved success from its efficiency with DVDs.

    There’s nothing really unique about its streaming.

    Increasing fees has only opened the door for its competitors.

    Bye, Netflix

  • Amanda

    after increasing their prices twice in less then a year I canceled my account … even if my option was nothing I will not support a company that treats their long time customers so …. that said bloxbuster picked up my business even tho I used streaming more then the DVD service BB is giving me a great deal of DVD’s Blue-Rays and games for the same price I would spend for just NetFlix and they are very Happy to have my business you have to go to their /helloblockbuster and it comes with a 30 day free trial . Nextflix thank you for making the decision easy to kick you to the curb.

  • http://www.honestgamers.com/ Jason Venter

    The whole thing is just stupid. $8 is totally reasonable for the $8 by-mail plan, and in some cases likely represents a loss for the company if people use the plan to its fullest benefit. People are enraged, though. “You’ll lose my business, you jerks!” they rage on forums. Nevermind that actually having those customers costs Netflix money, rather than making it. You try and mail four DVDs a month to someone, at a rate of one per week. See how far you get on the $2 that people were paying for the service.

    Netflix isn’t perfect, but we need to move past the perception that businesses shouldn’t make money. They should. That’s why a business exists. It’s not insulting that Netflix is now charging enough to (just barely) make a profit on you or me and to expand its streaming options–which also cost money–and expand its service to devices people are using more frequently. It’s not insulting because, frankly… it’s about time!

    • Richard

      If they are not making money, why has their stock been doing so well?

  • Jones

    I really didn’t want to join Netflix because I was skeptical about their service and pricing. It seemed like a pretty good deal at the time. I questioned the wife several times about it, you know the questions, “are you sure its not some kind of trick?” etc. After debating about it for a month or so I decided to take the plunge. Seemed like everything was on the “up and up”, they gave us the first 30 days free and after that the price was what they said it would be. A couple of months after we had our account we got an email saying the price was going up, hmm, although the hike wasn’t much it raised a flag and I voiced my concerns once again to the wife, saying “I still don’t trust them”. Now, the mother of all shockers, I’m at work and the wife calls and says “we got an email from Netflix”. I say “OK, what’s up?” she says “they are raising the price”, I say “really, to what?” she says “to double what we are paying now, for the same service” I said are bleeping and kidding me?” My intuition from the beginning told me nope; don’t trust this company, now it appears that I was right all along. Once the price hike takes effect in Sept I’ll will be going to streaming only which will keep the price the same as I’m paying right now, since I have a Redbox within walking distance of my home and several Redbox locations within a mile or two radius of my home (they seem to be everywhere you go) I decided to get an account at Redbox. Quite frankly, I think Netflix shot themselves in the foot on this latest stunt, the competition is getting fierce, now I’m starting to see Blockbuster machines everywhere too. If Netflix raises the price for their streaming service that will be the last straw, I’ll close the account and just rent movies at Redbox and be done with it. So to answer the question, yes, Netflix should worried about losing customers.

  • http://www.RBRandL.com S B Stokes

    I think Netflix is already seeing a drop in customers. We cancelled our account as soon as we received notice that they were double the price to rent DVD’s and have streaming. Too many changes within too short a time period and too high a price increase. Netflix got greedy!

  • http://mainsttax.com Cheryl Morgan

    As far as exposure is concerned, Netflix is headed in the right direction. But I don’t think exposure is Netflix’ problem. The problem is selection. When I join Netflix,I thought I was getting an edge on Comcast, fios, etc. I thought I would get movies at least a day ahead of regular stuff. Instead all I see are old movies, movies I’ve seen a million times and crap I can get from the networks. Why should I spend a penny extra for stuff like this? And for what I have to do to get it on screen, it just isn’t worth it. If yoou can’t figure out a way to get newer movies, quicker and with a meaningful selection, your market share will suffer.

  • http://inspire-gifts.com GCornett

    Companies raise their prices all the time. Have you shopped at a grocery store lately? It’s simple economics. If you want the service, you’ll pay the price, and if you don’t want it, you won’t. Businesses are in business to make money, too many customers in the age of “free” stuff forget that.

  • http://www.ealtbay.com F Simmons

    I like Netflix, and I use their content. Just like eBay , when they raised their rates to 9%, there will be an outcry, the opposition will gain market share, and a steller business reputation will be tarnished. Sad………………

  • http://thiswebsiterules.com dan

    People do not think outside of the box. Netflix used the oldest trick in the book. Anyone educated person, which took a business class in high school, college, or has common sense should be able to understand what netflix did. SUPER LOW PRICES to run blockbuster out of business. After crippling all the competition, netflix raises the prices because there is nobody to compete with. Anybody ever heard of Wal-Mart. Netflix created a monopoly by slashing prices until the competition was out of business, then jacked up rates. ITS VERY SIMPLE PEOPLE

    • Jones

      Dan, I generally agree with your post, but what comes around goes around. Netflix may have done their competitors in, but, watch what happens to Netflix…Another “fish” will come along and swallow up Netflix just like Netflix swallowed up their competition…I suspect RedBox and others will start streaming, or, people will drop Netflix and simply go to a “box” to get their movie(s). Every company has their day in the sun and sun will set for Netflix, its not question if it will happen, its simply a matter of time…If I held stocks in Netflix I’d be really nervous right now because when August and Sept come along, I believe you will see a mass exodus from Netflix. Those that are still holding Netflix stock at that time are going to take a major hit…Also, the sharks will be circling right about that time too, you will see the competition really hit Netflix hard, kind of like going for the jugular vein when the prey is already down…Watch what happens…

    • Brandon

      So true!

  • similligan

    I agree 100% with Dan’s comment! Like most mega-companies, Netflix realizes that people no longer have an alternative for streaming movies. It’s the same scam that phone, cable and electric companies use to deceive the consumer. They know you need it or want it, and there’s nothing you can do about it. You either accept it, or cancel the service and move onward. In most cases you can’t cancel or you’re stuck in the dark. When you have no other alternatives, they give it to you real hard!

  • Ed

    The numbers don’t lie. Netflix has dropped low and fast in their consumer perception. It’s understandable that it’s low because within a few months Netflix has increased their price by $1.00, redesigned their platform, and now the nail in the coffin seems to be this latest price increase of around $7.00. I wonder who does market research for Netflix because they have made some costly mistakes that has allowed Redbox to put more than their foot through the door. I think the advantage Netflix had was the at home rentals combined with the streaming feature, but at the lower price. With the increase all most doubling I think a lot of people will say its not worth it and just rent Redbox movies for a buck. If Redbox continues to narrow the Netflix gap of titles available, they will eventually take over the top spot. Should Netflix Be Worried About Losing Customers? They should be terrified.

  • Terry Farrell

    We plan to cancel streaming portion of the service before the new price takes effect.

  • Richard

    I used streaming because it was included, but was not a frequent user. I deleted it when I received the notice, so my monthly bill is lower now. They kinda shot themselves in the foot and got greedy – bad thing to do these days. Whoever thought this idea up at Netflix should be fired on the spot!

  • Jojo

    They should absolutely be worried, and here’s why:

    1) People turned to them because they were affordable. But now they are getting greedy – you can’t tell me their costs have doubled, so why have the consumers cost nearly doubled?

    2) With the increase in price, it forces a person to justify having their DVD’s laying around for 2-3 weeks. Since that isn’t cost effective anymore, people will switch to streaming. But now you have the problem of “there’s no good movie’s” – or should I say “recent” movies with streaming – so people will get frustrated and leave the service entirely.

    The takeway: Netflix started out great – but their corporate greed is now evident.

  • http://thecardchest.com/ Mctittles

    Keep in mind, although you came in at the right time to get a price change twice, Netflix has been operating for years at the same price. This is one of the effects of the companies they are getting their movies from charging Netflix more after their contract runs out.
    I think the price change was necessary, although they need to get their head outta their ass about the layout change.

    • J. Anne

      That’s not true. This is the SECOND price increase since I got NetFlix, which was only about 2 years ago.

  • DW

    Comcast called.

    1 year upgrade, HD Digital TV upgrade, HBO, and streaming on demand. $10, no contract.

    Netflix will not see AUGUST with us.

    • http://www.themoxiebee.com Allie_Jay (aka MoxieBee)

      Sounds good! Were you a new or previous Comcast customer? We’re existing customers and were stonewalled when we tried to get a better deal w/them. Any advice? Thanks, Allie

    • Will

      Trouble with movie packages offered by cable TV, there’s never nothing on when you want to watch it. With streaming services like Netflix you at least have a multitude of choices available to you now.

  • Nishant

    We will switch just to streaming.

    In my eyes it is also greed.

    Live is expansive enough without Netflix.

  • http://www.tden.com king ralph

    It’s somewhat unbelievable that people actually watch TV or movies on their phone. I suspect the younger generation is more involved in this type of activity and is therefore suffering from media overload.

  • Melissa

    We just signed up for Netflix right before the price hike announcemnet. I’ll take my free month and then I am bailing out.

  • http://www.themoxiebee.com Allie_Jay (aka MoxieBee)

    Greed coupled with bad re-design, clueless PR, and sub-par CS spells b-u-h-b-y-e Netflix.

  • Netflix No More

    Not happy that Netflix raised rates so much on the mixed plan. My wife and I used the DVDs and preferred new releases, daughters mostly streamed. Worked out well. With the price increase, we’ll be trying alternatives. Cancelled my netflix membership.

  • JS GulfShores

    I will be leaving Netflix at the end of August when the new “Greedhead Plan” is scheduled to be implemented. Red Box, Huly and others offer much more competitive costs for my usage pattern, which is not uncommon. in the meantime, I will be rolling through the DVDs in August.
    Bye, Bye Netflix.

  • J. Anne

    I was tossing around the idea of renewing my Amazon Prime when this NetFlix increase came out of nowhere. I love Amazon Prime but when my subscription expired in April I really didn’t have the 80 bucks to renew. Well, the day NetFlix announced their rate hike I went back to Amazon Prime. 2-day shipping and free streaming. No, their basic streaming isn’t great, but they rent new releases for $1.99 which is a lot less than my pay Per View with DISH.

    Anyway, I already canceled my account. I had it for about 2 years and have wondered the entire time if we were really getting our money’s worth. The price increase just clarified the issue for me…no – NetFlix was not even worth the $9.99 I was paying, let alone double that price to keep the same service I had.

  • Jonathan Peebles

    There customer service is amazing, they have more DVDs then the other services, you get them quicker than blockbuster, and they are in better condition. The price change is taxing but the convenience is important to me. Of course I don’t use the streaming video feature anyways so that doesn’t bother me as much.

  • David Thompson

    Netflix knew there would be some members cancelling the service. What they may have misjudged is the elasticity of their existing members. We will never know the truth. This may give a newbie the opportunity that they needed.

    Oh, I cancelled my Netflix service, may be spending more time in the yard, with the grandchildren, even talking with friends.

    • Jones

      David, they have not only misjudged the elasticity of their existing customers but they were also very short sighted on the hope of getting new customers as well. They will lose existing customers, customers that recently signed up and any potentially any new customers. I’m a fairly new customer to Netflix, I haven’t even been with them for a year.

      • shonn

        I dont get what the fuss is about. Have people frustrated not checked out the cost of postage. Have all not heard rumors of future potential of a 4 or possibly 3 days per week postal delivery service?

        Of course they need to ween us all off the DVD portion of their business. It just makes sense to do so. And the only way to get people to stop choosing dvd’s, is to increase price. Color me idealist, but the move is less profit chasing than it is to act as a deterrent. They knew the DVD portion would get cancels, but it is DVD portion cancellations they sought in the first place.

  • Will

    I would like to think that six months from now the Netflix move to raise prices 60% will prove to be a disastrous corporate decision, forcing the CEO to resign, stock prices to tumble etc. I’m not sure how many thousands of users of their service they have but I would guess the entirety of them is really PO’ed.

    How it was done was certainly bad from a PR point of view.

    • Jones

      Will, I don’t think it will take 6 months for Netflix to start seeing a major fallout from this event. Its my understanding that the new price increases will take affect starting Sept. I plan on changing my plan just before the hike to streaming only, which will essentially mean I’ll be paying the price I’m paying now, I’ll just get less for my money. Quite frankly, I’d get rid of streaming too but my daughter enjoys Netflix for the childrens movies, they really don’t offer a whole lot of new releases in the streaming dept for adults. When I want to watch a movie, I’ll go over to the corner store and pay a buck at the Redbox machine.

  • http://www.pennyleisch.com Penny Leisch

    If people look at the pricing of $7.99 as being the same for the streaming and jumping from $2.00 to $7.99 for the single-DVD service, which is the way it was priced when we signed up, that’s way more than a 60% increase on the DVD side. We are among the customers who will be cancelling the DVD service before Sept. 1.

    The price change hit two-weeks after our 30-day free trial expired. That makes it feel a bit like a bait-and-switch too. Although, in all honesty, I can’t say how long they ran that promotion. Maybe it’s just a coincidence. Since the announcement, we’ve had more outages and problems than before, most without compensation. The 3% refund was only 24-cents on the lowest service level–not much incentive to tolerate problems.

    Are the recent download problems happening because customers are dropping the DVD service and overloading the streaming? If so, what’s going to happen around September 1? The backlash may just be starting.

    On the other hand, maybe Netflix doesn’t think that other online services are serious competition. The options grow daily and Netflix just gave their competitors a real reason to ramp up. There are customers out there that are ready to jump with very little incentive.

  • Brandon

    I quit Netflix on the first price hike mostly because I sat on a waiting list FOREVER never getting the videos I wanted. I guess this might reduce demand for DVD’s which might increase the service, the simplier fix would have been purchase more DVD’s and or give incentives to return faster. I think with red box only being $1 a day, you have to justify $8+ in video that take another 30-60 to come out and then you get put on list never know if they will show. Wait and see is my answer but I think chances are it will fail in this economy.

  • http://www.absolutewebworks.com/ Absolute Webworks

    That is the importance of strong competition. Competition is what creates gas wars. The consumer wins when companies are competing for your business. When a company gets so big and powerful it does give them the ability to name their price. If it appears that a company does not have integrity I am not open to giving advice on how they can improve their PR. What justifies a 60% increase? If they want to win some of their previous customers back offer them a 60% decrease in price of the original rates. I know that sounds ridiculous but no more ridiculous than the 60% increase.

  • Ronald Sweeney

    I dropped them like a hot potato when they notified me of the price changes. I can go to Redbox or other places for $1.00

  • http://www.skillfool.com rob

    netflix is still a great deal no matter how you slice it. I can’t believe people are freaking out about such a small increase in price. They are constantly adding content and it isn’t free. Or would you rather go back to the days of brick and mortar Blockbusters with late fees and trips to the stores.

    sorry, but any who complains is a moron.

  • Chris

    I’m a Netflix customer, and I have to say that, for the most part, I’ve been very satisfied. No, I certainly didn’t like the new site design, but as a webmaster, I understand that this will happen. The price increase is quite significant, no doubt. But it is still fair for what I get. People don’t like price increases, regardless of what it is. But it’s inflation, which we see all the time. Our gas, groceries, our favorite hobbies… they all increase in price at some point. It’s the nature of the beast, and I understand it.

    The previous poster said to offer former customers a 60% decrease in the original price for returning: That’s absurd! Let them go. They’ll return.

    Netflix gives us good service, and a pretty darn good selection. I mostly use the streaming service, and I’m still quite happy. Sure, they could offer more recent movies on streaming, but hey, whatever. Personally, I would be happier if they just killed the DVD service altogether and offered their current DVD lineup on streaming.

    Well, that’s my two cents. I won’t be leaving Netflix. No, I don’t like paying more, but I understand, and will do so. This is one Netflix customer who has always been satisfied!

    • Ryan

      I completely agree with just about everything you say here. I don’t like the price increase, but it’s still a great value and my family uses it all the time.

  • Chris

    Oh, and someone said that they dropped them like a hot potato when they announced the price increase: Why? Netflix is STILL a great value. If you just watch an occasional movie, then Redbox it. But I get streaming, plus DVD’s, and the streaming part I love!

    I agree: Anyone who complains about this, especially those who drop them just because of a price increase, is an idiot. You still get your money’s worth… and then some! Rock on Netflix!!

  • http://aidyspoetry.net AIDY

    I don’t think Netflix should be worried at all. It is still overall cheaper. I think from the very beginning Netflix was selling themselves short. Consumers got ‘caught up’ in getting overwhelmingly more for less. Even if the consumer choose both streaming and DVDs shipments, overall they are still paying less than they would elsewhere. I know of someone who watched a total of 80 DVDs in one month! Imaging paying at like a Blockbuster or pay-per-view option would have cost him? Even at a RedBox, it would have been $80 for the month. Netflix is $30 for him a month. Netflix is still a win overall.

    • john landy

      80 DVDs in one month. that’s two+ DVDs per day. WOW! That’s really fast shipping! Awesome. Care to share whatever it is you’re smokin?

      • Leon

        Netflix in NYC and BOSTON pretty much get dics on your cue in one day, sometimes it takes two, but rarely, been a netflix customer since day one.

  • Bryan

    Let me summarize my feelings about this change. I joined netflix for the price, not the selection.

    I never really used the streaming of netflix except once in a while watching some cartoons during my lunch break at work on my phone. Even then it was a long time coming. I know android has a fragmentation problem but I was thinking this would be out a lot sooner than it was. So really that leaves streaming delivery either via computers or TV through a gaming console or a set top box.

    Netflix is slow to add new content, I’m aware it has a lot to do with the deals studios have with netflix. It takes even longer for television shows to show up on netflix but I can get the ones I want to watch on Hulu a lot sooner.

    The new releases are rarely seen on netflix streaming service. I usually get them on disc long before I can see them streaming. However on-demand services will have these movies a lot sooner. Plus I can join Amazon Prime and get VOD as well. Netflix has a lot of older movies on streaming which is great if you are the type of person who just browses and will play Ghostbusters because you haven’t seen it in a while. I am the type of person who knows what I want to watch and I have my queue filled with all these movies.

    So there’s the final nail in the coffin for me for netflix streaming service. So that leaves the new price of the two-at-a-time plan plus the additional charge for Blu-Rays. I can get more for less over at Blockbuster. Yea, I know it is probably on the way out because of competition from netflix. However I can get blu-rays, dvds, and even games for $15.00/mo. That’s the same price as netflix but I also get games. Plus I can go exchange the movies in a store, yes there’s still a blockbuster store near my home.

    Blockbuster has a better selection of tv shows than netflix. One thing I didn’t like about netflix is all the “save” buttons instead of “add to queue.” Even for popular SyFy shows. As soon as I saw blockbuster had these ready to go and Tron Legacy was not on very long wait status I jumped ship.

    Again, I joined netflix for the price, not the selection.

    This may be blockbuster’s saving grace.

  • http://www.surveymoneyguide.com Sean

    This is a great chance for competitors to step up and stake their claim on our entertainment dollars. Blockbuster might become relevant again!

    • Leon

      how would blockbuster become more relevant, keep in mind they already went bust…

  • Renee

    I am a loyal Netflix customer, and while I will not be continuing with the DVD option, I have to say that I wouldn’t mind paying a little bit of a higher premium if it ment more streamable content. We canceled all of our cable and dish services and utilize Netflix exclusively for television services. I would never go back to paying the rates Dish Network, Comcast and Direct TV cost. The service with those companies is unacceptable and their content is pitiful. The future of this television is streaming services like Netflix and to ensure a broader selection of content we will have to pay a little more but as I said if they keep going the way they are that is just fine with me.
    As for whether these changes will injure their reputation? For those of use who understand the motivation behind it and the future of television and our access to it, we will stand behind this company. Keep up the good work guys! We LOVE you!

  • http://www.LoftLivingLA.com Ted Trent

    I did not sign up for the DVD plan. I watch the online version all the time. Today, after having just the online version now for about 1 week, I thought. I might as well cancel my cable tv since I don’t even watch it anymore. I value my Netflix account more than cable. I never thought I would think that.

  • Bobby

    To all of you average thinkers that speak without thinking. The popular response that I can go to Redbox and get a movie for a $1.00 is not as great as it seams. It’s really $1.08 with tax. You are able to get 8-10 dvd’s a month from Netflix at most because the time it takes to mail it there and back. Tuns out to be $8.64-$10.80 for Redbox. If you add the cost of gas to get to a Redbox then a bit more, say $10.00-$12.00 a month. Currently, you will pay $8.00 to Netflix and you don’t have to go anywhere. That makes it cheaper and more convenient. If you pay for both services with Netflix, $16.00, you get 8-10 dvd’s and unlimited movies on your tv and portable devices. Now your getting hundreds of movies. You get about 14 movies at Redbox for the same price. For $16.00 (hundreds of movies at Netflix) or (14 movies at Redbox). It’s pretty clear now.

    • john landy

      really? 8 movies a month? you do know there’s something called ‘outside’, right?

    • DroppedNetflix

      I don’t think so; and you call people on here average thinkers?
      Maybe you should open your eyes (and mind) and not be so narrow minded. I think you are suffering from tunnel vision; I can take a pretty good guess why.

      Have you ever thought people might drive by a Redbox on their daily routines? Or that some people may only get 4 sometimes 5 DVD’s a month. Some people actually use PO Boxes and already have to drive to get their outrageously priced Netflix (Yeah I know, this is a hard concept for you to understand from average thinking people)

      Either you work for Netflix or some high interest loan company (credit card?) with all that fancy math and skills you are displaying, I am sure all those average thinkers bow down to your abilities (NOT).

      At your tax rate, you said $1.08 X 4 = $4.32 (no extra gas required, actually I drive by 2 everyday and I live in a rural area) Ummmmm, yeah even for us simpletons that is cheaper than $16.00 a month Netflix charges.

      I am sure now maybe you will tell me it is safer to get it out of my own mailbox than to walk up to a Redbox, maybe I will take a risk of a muscle pull, then regret my decision to drop Netflix.

    • AR

      Some of these comments really do look like employees of Netflix out trying to save the company some face.

      The bottom line really isn’t whether Netflix is still “a good deal”, it is the fact that they jacked the prices up by 60%. To continue supporting a company that raises their rates twice in a year is ludicrous. This is the time that you take your money and go support one of their competitors. Even if you still end up paying $16 a month between a combination of Redbox for dvds and something like Amazone prime, Hulu, or even Youtube.com’s movie section for your online streaming needs, it’s better than giving that money to Netflix. More competition for Netflix is a good thing for all of us in the end.

      If you stay with Netflix, you will just affirm to them that they may raise their rates as often, and by as much as they want with no consequence.

      This is clear thinking.

    • Gil Plumb

      True if movies are your life. I would never find time to watch 8 movies per month. I would watch 2 movies at most. With Redbox, I would pay for the movies I watch. Your argument doesn’t hold up if you don’t watch that many movies.

  • Bigbandsinger

    A lot of these sound like Netflix employees responding.

    It has been a very good deal for me for 6+ years but now, retired and on a fixed income, I have to decide what to keep. I seldom use their streaming because the selection is so dreadful so it will probably go. If I decide to stay with them at all, I will drop to 2 at a time and save a little more. I was upset by their 30 day delay deal with Warner (as if the greedy Warner execs don’t make enough money), the Sony drop and the website changes but I dealt with it. Unfortunately for them, the 60% price increase, I can’t and won’t deal with. Perhaps they could do a senior discount? Yea, right

  • http://www.MichaelJacksonINsider.com Pearljr

    Watch the jaw-droppingly FACTUAL documentary “Alive! Is Michael Jackson Really Dead?” on netflix tonight.

    YOu will be shocked and awed at the massive amounts of common-sense based evidence that Michael Joe Jackson faked his death.

    I promise you will be blown away!

    • DroppedNetflix

      Wow, that really has something to do with the price hike!

  • DroppedNetflix

    Bigband I agree completely, what a lot of hogwash people are spouting. Bobby? Really? Yeah like I could ever get 10+ DVD’s a month from netflix, more like 4 to 5. Redbox is not going to cost me any more in gas, I drive right by one everyday.

    I dropped NetFlix the day I got the announcement. Doubling my price? I do not think so. You can claim it is such a great value but I had an agreement with them to pay them XXX amount of dollars a month, they broke that agreement and lost my respect and trust. Hope it is the dagger in the heart and they go bankrupt!

    • Leon

      questions for you? How many DVD’s are available in a Redbox?
      What streaming service do you get?
      How many hours is a $1 renal?
      I am pretty sure it will cost you way more.

  • john landy

    watch their stock price through October and you’ll get your answer.

    • DroppedNetflix

      Good point. I do not care if they crash and burn or make a gazillion dollars.

      However, For me….I think they broke an agreement with me when they offered something for one price then changed the terms. Simply I think that that is crooked and underhanded.

      We all have a right to choose where we spend our money, if your happy with it stay, then later they can rake you over the coals again, throttle the turn around time on your DVD’s or reduce the rate of streaming, but it is your money and if your happy so be it.

      I just am not going to support a crook, someone who changed the agreement in mid-stroke just ’cause.

  • http://www.etsy.com/shop/giftshop1 Joe H

    This has been a great deal for us no more cable bills and between DVD by mail and streaming we spend about 5 cents per hour of TV watching. Most importantly I have not watched a commercial for over a year. As long as they stay commercial free we will be a customer only time will tell, when cable came came out the big sell was no commercials now you you run 50% commercial time. One thing missed here is the use of our Roku box we stream two movie companies, news and weather total cost to me $16 per month we cant be happier. Streaming is the future!

  • http://www.platinumlynx.net Chas

    Right now, Red Box is eating away at their market share and as you pointed out in the article, their missteps have been a lifesaver for the flailing Blockbuster. If a company such as Apple acquires Hulu, which it might, it will be a death knell for their streaming video expansion plans. One thing I am wondering, is why hasn’t some company stepped in with gaming-only kiosks similar to Red Box? Is there not a big enough market for such a business model?

    • Michael

      There is a big enough market for gaming kiosks, which is why Redbox started adding games to [many of] their kiosks back in October.

  • Ronald Killgo

    I think Netflix should be concerned about losing customers and business. They started their business with the mail out DVDs. They then added the online and TV streaming videos. That was enough to put many video rentals out of business. Other video and movie suppliers have started coming on board with the streaming video and movies.
    Now Netflix wants to separate the streaming from the mail out DVDs or at least charge more for the mail out DVDs. I am on a fixed income and can not afford any increases on anything so I will be forced to drop the mailing DVD part of their offer. I understand increase in cost of mailing but I would think a minimal increase of $1 should do the job.
    Other business will pick up where you left because it was a great idea. Netflix will definitely lose out when that happens.

  • http://pioneerlogsiding.com Rick Gunst

    We were hurt by their decision. Things have not been looking up and people and my customers are struggling. We are closing our account with Netflix but loved the ride while it lasted.

    RG

  • http://www.wilson-solutions.net/ Russ Wilson

    As a result of Netflix recent price changes, I have dropped their services. I will no longer be giving them my $9.99 a month; due to their greed. I think Nextflix should have issued their price changes for their new customers; keeping the price of their services the same for their long-time customers. Now, Netflix has to face customers like myself, totally dropping out!
    I think thyat Netflix has made a grave mistake in the decision to increase their price. They already had a large customer base. Now they face people like myself, having to make a hard decision, of whether or not to pay the rediculous fee’s they want to begin charging!

  • Neil

    We will be cutting back to just DVD’s. The streaming is nice and creative; but unfortunately, the movies are just too old. Until they can cut a deal for new stuff – we just don’t need Netflex much. I think they threw themselves under the bus and left a wide opening for a competitor to jump in on the bus.

    • Leon

      which competitor? No competitor is going to get better rates than Netflix…Netflix wants to have more current stuff, the vendors, sony, universal, fox, they want much more money to offer that and Netflix knows people wont pay for that type of premium service.

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